UNCLASSIFIED. UNCLASSIFIED Army Page 1 of 13 R-1 Line #113

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1 Exhibit R2, RDT&E Budget Item Justification: PB 2015 Army : March : Research, Development, Test & Evaluation, Army / BA 5: System Development & Demonstration (SDD) COST ($ in Millions) Years FY 2013 FY 2014 R1 Program Element (Number/Name) PE A / Artillery Systems EMD # FY 2016 FY 2017 FY 2018 FY 2019 To Program Element Continuing Continuing 509: LIGHTWEIGHT 155M HOWITZER Continuing Continuing 516: Paladin/FAASV # The Request will be submitted at a later date. Note Beginning FY15, A, project 516 has been moved to new APE A, project ED8. A. Mission Description and Budget Item Justification Paladin Integrated Management (PIM) is an ACAT 1D Acquisition Program. The program will replace the current fleet of M109 Family of Vehicles (FoV) consisting of the M109A6 Paladin Self Propelled Howitzer and M992A2 Field Artillery Ammunition Supply Vehicle (FAASV). PIM is an Army Modernization Program that addresses a critical capability gap created by the NonLine of Sight Cannon termination in June of 2009 as well as obsolescence and size/weight and power (SWaP) issues in the M109 FoV current Fleet. The PIM system integrates current Bradley Fighting Vehicle suspension and drive train items, Future Combat Systems (FCS) developed Electric Gun Drive systems and current fleet (M109A6) fire control systems into a new chassis that provides better force protection, survivability and increased electrical power over the current fleet. PIM is a two vehicle system: Self Propelled Howitzer (SPH) and Carrier Ammunition Tracked (CAT). The SPH has all characteristics listed above. The CAT utilizes all these same components and traits less those that relate directly to the cannon system. The PIM system replaces the current M109 FoV on a one for one basis, in the cannon fires battalions in the Armored Brigade Combat Team Formations and the Echelons above Brigade (EAB). The overall intent is to increase Soldier force protection, vehicle survivability, provide an appropriate amount of SWaP capacity to add future capabilities, reduce life cycle costs and extend the life of the M109 FoV through FY2050. The Lightweight 155mm Howitzer (LW155), also known as the M777A2, provides direct, reinforcing, general support fires to maneuver forces and direct support artillery. It replaces all howitzers in all missions in the USMC and replaces the M198 howitzer as the general support artillery for light forces in the Army. The LW155 fires unassisted projectiles to a range of 15 miles and assisted projectiles to 19 miles. The addition of the digital fire control system enables the weapon to program and fire the improved Excalibur precisionguided munitions to ranges in excess of 25 miles with better than 10meter Circular Error Probable (CEP) accuracy. The LW155 is the first ground combat system whose major structures are made of high strength titanium alloy and the system makes extensive use of hydraulics to operate the breech, load tray, recoil and wheel arms. The combination of titanium structures and the use of hydraulic systems resulted in a significant weight savings of 7000 lbs over the M198 system. Compared to the M198, the LW155 emplaces threetimes faster and displaces fourtimes faster. It traverses 32 percent more terrain worldwide and is 70 percent more survivable than the M198. It is a successful joint service program between the Marine Corps and Army working together to develop, produce, field, and sustain the howitzer. The LW155 was first introduced into the Marine Corps in April 2005 and the Marines have now fielded the howitzer to all active units. The Army has fielded the howitzer to its Stryker Brigade Combat teams (SBCT), Fires Brigades and National Guard. Fielding of the Infantry Brigade Combat Teams PE A: Artillery Systems EMD Army Page 1 of 13 R1 Line #

2 Exhibit R2, RDT&E Budget Item Justification: PB 2015 Army : March : Research, Development, Test & Evaluation, Army / BA 5: System Development & Demonstration (SDD) R1 Program Element (Number/Name) PE A / Artillery Systems EMD (IBCT) will commence in FY14 and continue through The LW155 saw extensive action in Afghanistan, receiving high marks for its performance. Having now been in the field for almost 10 years, the howitzer will be going through obsolescent replacement of electronic components in its digital fire control system. New start in FY15. Funding supports engineering studies for capabilities identified in the Joint Operation Requirements Document (JORD) but deferred during Engineering Manufacturing and Development due to technology maturity, cost and schedule. This includes a digital direct fire site for the Digital Fire Control System and low temperature, high density power solutions to achieve full operational requirements. B. Program Change Summary ($ in Millions) FY 2013 FY 2014 Previous President's Budget Current President's Budget Adjustments Congressional General Reductions Congressional Directed Reductions Congressional Rescissions Congressional Adds Congressional Directed Transfers Reprogrammings SBIR/STTR Transfer Other Adjustments PE A: Artillery Systems EMD Army Page 2 of 13 R1 Line #

3 Exhibit R2A, RDT&E Project Justification: PB 2015 Army : March 2014 COST ($ in Millions) 509: LIGHTWEIGHT 155M HOWITZER Years FY 2013 FY 2014 R1 Program Element (Number/Name) PE A / Artillery Systems EMD 509 / LIGHTWEIGHT 155M HOWITZER # FY 2016 FY 2017 FY 2018 FY 2019 To Continuing Continuing Quantity of RDT&E Articles # The Request will be submitted at a later date. Note The Lightweight 155mm (LW155) Towed Howitzer is a jointly managed program with the Marine Corps. A. Mission Description and Budget Item Justification The Lightweight 155mm Howitzer (LW155), also known as the M777A2, provides direct, reinforcing, general support fires to maneuver forces and direct support artillery. It replaces all howitzers in all missions in the USMC and replaces the M198 howitzer as the general support artillery for light forces in the Army. The LW155 fires unassisted projectiles to a range of 15 miles and assisted projectiles to 19 miles. The addition of the digital fire control system enables the weapon to program and fire the improved Excalibur precisionguided munitions to ranges in excess of 25 miles with better than 10meter Circular Error Probable (CEP) accuracy. The LW155 is the first ground combat system whose major structures are made of high strength titanium alloy and the system makes extensive use of hydraulics to operate the breech, load tray, recoil and wheel arms. The combination of titanium structures and the use of hydraulic systems resulted in a significant weight savings of 7000 lbs over the M198 system. Compared to the M198, the LW155 emplaces threetimes faster and displaces fourtimes faster. It traverses 32 percent more terrain worldwide and is 70 percent more survivable than the M198. It is a successful joint service program between the Marine Corps and Army working together to develop, produce, field, and sustain the howitzer. The LW155 was first introduced into the Marine Corps in April 2005 and the Marines have now fielded the howitzer to all active units. The Army has fielded the howitzer to its Stryker Brigade Combat teams (SBCT), Fires Brigades and National Guard. Fielding of the Infantry Brigade Combat Teams (IBCT) will commence in FY14 and continue through The LW155 saw extensive action in Afghanistan, receiving high marks for its performance. Having now been in the field for almost 10 years, the howitzer will be going through obsolescent replacement of electronic components in its digital fire control system. New start in FY15. Funding supports engineering studies for capabilities identified in the Joint Operation Requirements Document (JORD) but deferred during Engineering Manufacturing and Development due to technology maturity, cost and schedule. This includes a digital direct fire sight for the Digital Fire Control System and low temperature, high density power solutions to achieve full operational requirements. B. Accomplishments/Planned Programs ($ in Millions) FY 2013 FY 2014 Title: Management Services Description: Funding supports management services within the Program Management Office, Towed Artillery Systems Plans: PE A: Artillery Systems EMD Army Page 3 of 13 R1 Line #

4 Exhibit R2A, RDT&E Project Justification: PB 2015 Army : March 2014 R1 Program Element (Number/Name) PE A / Artillery Systems EMD 509 / LIGHTWEIGHT 155M HOWITZER B. Accomplishments/Planned Programs ($ in Millions) FY 2013 FY 2014 Funding supports management and coordination with the Armaments Research Development and Engineering Center to conduct trade studies to determine the best material solution for the digital direct fire sight and low temperature, high density power solutions. Title: Product Development Description: Funds engineering support from the Armaments Research Development and Engineering Center Plans: Funding will support conducting trade studies to determine the best material solution for digital direct fire sight for the Digital Fire Control System and low temperature, high density power solutions to achieve full operational requirements Accomplishments/Planned Programs Subtotals C. Other Program Funding Summary ($ in Millions) Line Item FY 2013 FY 2014 FY 2016 FY 2017 FY 2018 FY 2019 To M777 Mods: M777 Mods Modification of Weapons and Other Combat Vehicles SSN GZ1700 Procurement, WTCV, Army, LW155 with: Procurement, WTCV, Army, LW155 with TAD G01700 Remarks Procurement Funding supports active retrofits for previously contracted Digital Fire Control System components, addressing obsolescence. D. Acquisition Strategy This will be a collaborative effort between the Program Management Office, Towed Artillery Systems, and the Armaments Research Development and Engineering Center at Picatinny Arsenal. E. Performance Metrics N/A PE A: Artillery Systems EMD Army Page 4 of 13 R1 Line #

5 Exhibit R3, RDT&E Project Analysis: PB 2015 Army : March 2014 Management Services ($ in Millions) Category Item Program Management Method & Type Sub Allot Product Development ($ in Millions) Category Item Engineering Remarks Method & Type MIPR Performing Activity & Location Program Management Towed Artillery Systems : Picatinny Arsenal, NJ Performing Activity & Location Armaments Research & Developmet Center : Picatinny Arsenal, NJ Years FY 2013 FY 2014 R1 Program Element (Number/Name) PE A / Artillery Systems EMD 509 / LIGHTWEIGHT 155M HOWITZER To Oct Continuing Continuing Continuing Subtotal Years FY 2013 FY 2014 To Oct Continuing Continuing Continuing Subtotal Years FY 2013 FY 2014 To Project s PE A: Artillery Systems EMD Army Page 5 of 13 R1 Line #

6 Exhibit R2A, RDT&E Project Justification: PB 2015 Army : March 2014 COST ($ in Millions) Years FY 2013 FY 2014 R1 Program Element (Number/Name) PE A / Artillery Systems EMD # FY 2016 FY 2017 FY 2018 FY 2019 To 516: Paladin/FAASV Quantity of RDT&E Articles # The Request will be submitted at a later date. Note Starting FY15, A, project 516 has been moved to new APE A, project ED8. A. Mission Description and Budget Item Justification Paladin Integrated Management (PIM) is an ACAT 1D Acquisition Program. The program will replace the current fleet of M109 Family of Vehicles (FoV) consisting of the M109A6 Paladin Self Propelled Howitzer and M992A2 Field Artillery Ammunition Supply Vehicle (FAASV). PIM is an Army Modernization Program that addresses a critical capability gap created by the NonLine of Sight Cannon termination in June of 2009 as well as obsolescence and size/weight and power (SWaP) issues in the M109 FoV current Fleet. The PIM system integrates current Bradley Fighting Vehicle suspension and drive train items, Future Combat Systems (FCS) developed Electric Gun Drive systems and current fleet (M109A6) fire control systems into a new chassis that provides better force protection, survivability and increases electrical power over the current fleet. PIM is a two vehicle system: Self Propelled Howitzer (SPH) and Carrier Ammunition Tracked (CAT). The SPH has all characteristics listed above. The CAT utilizes all these same components and traits less those that relate directly to the cannon system. The PIM system replaces the current M109 FoV on a one for one basis, in the cannon fires battalions in the Armored Brigade Combat Team Formations and the Echelons above Brigade (EAB). The overall intent is to increase Soldier force protection, vehicle survivability, provide an appropriate amount of SWaP capacity to add future capabilities, reduce life cycle costs and extend the life of the M109 FoV through FY2050. B. Accomplishments/Planned Programs ($ in Millions, Article Quantities in Each) FY 2013 FY 2014 Title: Paladin/FAASV Integrated Management (PIM) Development Description: Funding is provided for the following developmental efforts: Articles: FY 2013 Accomplishments: Completion of all program documentation, required reviews (Functional Configuration Audit, Product Readiness Review and System Verification Review). Execution of key testing support: LUT and other DT Phase II. Continuing Software Phase II maintenance efforts for Corrective Actions, Producibility, and Obsolescence (CPO) functionality. Engineering development for CPO changes required for LRIP and continuance of Software Phase III development. Development of logistical support products required for fielding (manuals, training). The production of 1.5 Sets of PIM for the execution of Full Up Systems LiveFire (FUSL). FY 2014 Plans: Finalization of developmental fixes, subsystem qualification, and testing for production. Continuance of engineering development for CPOs and Software Phase III efforts required for LRIP productioncontinue Software Phase II maintenance efforts for CPO PE A: Artillery Systems EMD Army Page 6 of 13 R1 Line #

7 Exhibit R2A, RDT&E Project Justification: PB 2015 Army : March 2014 R1 Program Element (Number/Name) PE A / Artillery Systems EMD B. Accomplishments/Planned Programs ($ in Millions, Article Quantities in Each) FY 2013 FY 2014 functionality. Executing Software Developmental Qualification Testing (DQT) for Software Phase III. Development of an Objective Underbelly Kit per guidance of the Defense Acquisition Executive (DAE.) Continued development of logistical support products (manuals and training) required for fielding. Execution of First Article Testing (FAT) of production vehicles. Title: Test and Evaluation Description: Funding is provided for the following government test efforts: Articles: FY 2013 Accomplishments: Plan and execute operational testing and continued DT including qualification of subsystems, system safety, performance testing, live fire exploitation testing, logistics demonstration, and additional Green DT. Key tests include a Limited User Test (LUT) to evaluate suitability and effectiveness in an operational environment, and DT to include completion of the second segment of the RAM Growth Curve (RGC); extreme temperature testing; transportability testing; durability testing of the Carrier, Ammunition, Tracked (CAT) vehicle; automotive and firing performance; and initial testing to verify Corrective Action, Producibility, and Obsolescence (CPO) changes resulting from earlier testing and continued development. Live fire test events include BH&T exploitation testing, fuel cell and Improvised Explosive Device (IED) testing, and behind armor debris testing. Logistics demonstration continues on prototype vehicles to develop maintenance procedures and publications. FY 2014 Plans: Plan and execute continued DT including qualification of subsystems, system safety, performance testing, live fire exploitation testing, and logistics demonstration. Key developmental tests events include continued verification of CPO changes to validate the LRIP production configuration. This testing consists of full load cooling test, software DQT, and automotive and firing performance testing on a production representative vehicle. Key live fire test events include final exploitation testing on a BH&T and production representative vehicle, component ballistic testing, and testing of the Automatic Fire Extinguisher System (AFES). Logistics demonstration is integrated with the test plan as CPO changes are verified. Title: Program Management Articles: Description: Funding is provided for the following program management support: FY 2013 Accomplishments: Government System Engineering and Program Management for the total program including: Original Equipment Manufacturer (OEM) management consisting of weekly, monthly, and quarterly program management reviews; continue contract execution management, and execution of key program reviews (FCA, SVR and PRR). Manages Government Developmental Test and Evaluation program. Management of LRIP contract award process. all program documentation and reviews for the MS PE A: Artillery Systems EMD Army Page 7 of 13 R1 Line #

8 Exhibit R2A, RDT&E Project Justification: PB 2015 Army : March 2014 R1 Program Element (Number/Name) PE A / Artillery Systems EMD B. Accomplishments/Planned Programs ($ in Millions, Article Quantities in Each) FY 2013 FY 2014 C (production) decision in JUN Management of the program cost, schedule, and performance metrics including making programmatic tradeoff decisions. Management of Other Governmental Agencies (OGAs) that support the PIM program. FY 2014 Plans: Government System Engineering and Program Management for the total program including: OEM management consisting of weekly, monthly, and quarterly program management reviews; continue contract execution management for the EMD phase contract until completion of all efforts in FY 16. Manages Government Developmental Test and Evaluation program. Management of the program cost, schedule, and performance metrics including making programmatic tradeoff decisions. Management of Other Governmental Agencies (OGAs) that support the PIM program. Title: Training Description: Funding is provided for the following training government and contractor efforts: Articles: FY 2013 Accomplishments: PIM Training Development supports the development of Training Aids, Devices, Simulators and Simulations (TADSS) for crew and maintainers, New Equipment Training (NET) and fielding plans. FY 2014 Plans: Continue PIM training developmental efforts that support TADSS for crew and maintainers, NET, and fielding plans. Title: Data Articles: Description: Funding is provided for the following data contractor efforts: FY 2013 Accomplishments: or Technical Data Package Updates and Technical Publications FY 2014 Plans: or Technical Data Package Updates and Technical Publications Accomplishments/Planned Programs Subtotals C. Other Program Funding Summary ($ in Millions) Line Item FY 2013 FY 2014 FY 2016 FY 2017 FY 2018 FY 2019 To Paladin/FAASV: Paladin/FAASV Mod PE A: Artillery Systems EMD Army Page 8 of 13 R1 Line #

9 Exhibit R2A, RDT&E Project Justification: PB 2015 Army : March 2014 R1 Program Element (Number/Name) PE A / Artillery Systems EMD C. Other Program Funding Summary ($ in Millions) Line Item FY 2013 FY 2014 FY 2016 FY 2017 FY 2018 FY 2019 To Paladin Integrated Management (PIM): PIM Mod In Service Remarks Starting FY15, A, project 516 has been moved to new APE A, project ED8. D. Acquisition Strategy The PIM Program was initiated on 16 August 07 under the BAE Systems, Inc., System Technical Support (STS) W56HZV07C0096. Subsequent work directives were awarded under BAE STS contract W56HZV07C0256 to further define the configuration of the PIM vehicles. On 14 August 2009, a Research, Development, Test and Evaluation (RDT&E) W56HZV09C0550 was awarded to BAE Systems Inc. for the Prototype Development and Fabrication of 7 prototype vehicles (5 PIM Self Propelled Howitzer Systems (SPHS) and 2 PIM Carrier Ammunition Tracked (CAT) vehicles). A Comprehensive Modification (CCM) award to the RDT&E contract was accomplished on 6 Jan This modification allows for the completion of the Engineering and Manufacturing Development (EMD) Phase and transfers the system responsibility for the program from the Government to BAE Systems Inc. The planned LowRate Initial Production (LRIP) contract is of a Fixed Price Incentive Firm (FPIF) contract type for procurement of vehicles with a period of performance running from Nov 2013 through approximately Jun The LRIP contract will provide for three LRIP years with the initial base year including 19 SPHs and 18 CATs and the remaining two option years with 18 sets and 30 sets, respectively (each set consisting of one each SPH and CAT) of PIM vehicles. The Full Rate Production (FRP) contract is planned as a FPIF contract that converts to a Firm Fixed Price (FFP) contract after the second year of FRP. The FRP contract provides for the remaining PIM vehicles to fulfill the requirement up to the Army Acquisition Objective of 580 sets. E. Performance Metrics N/A PE A: Artillery Systems EMD Army Page 9 of 13 R1 Line #

10 Exhibit R3, RDT&E Project Analysis: PB 2015 Army : March 2014 Management Services ($ in Millions) Category Item PMO Support Method & Type MIPR Product Development ($ in Millions) Category Item Method & Type Training SS/CPIF Performing Activity & Location PM Paladin/FAASV : Picatinny, NJ/ TACOM Performing Activity & Location BAE Systems : York, PA Years FY 2013 FY 2014 R1 Program Element (Number/Name) PE A / Artillery Systems EMD To Dec Dec 2013 Continuing Continuing Continuing Subtotal Years FY 2013 FY 2014 To Dec Nov 2013 Continuing Continuing Continuing Data SS/CPIF BAE : York, PA Dec Nov 2013 Continuing Continuing Continuing Small Business Innovative Research/Small Business Technology Transfer Program PIM Development or PIM Development Government Various TACOM : Warren, MI Continuing Continuing Continuing SS/CPIF MIPR BAE, Systems : York, PA Various OGAs : Various Remarks Funding has been moved to new PE and PROJECT ED8. Test and Evaluation ($ in Millions) Category Item System Level Testing Method & Type Various Performing Activity & Location Various OGAs : Various Nov Nov 2013 Continuing Continuing Continuing Continuing Continuing Continuing Subtotal Years FY 2013 FY 2014 To Nov Feb 2014 Continuing Continuing Continuing Subtotal PE A: Artillery Systems EMD Army Page 10 of 13 R1 Line #

11 Exhibit R3, RDT&E Project Analysis: PB 2015 Army : March 2014 Remarks Years FY 2013 FY 2014 R1 Program Element (Number/Name) PE A / Artillery Systems EMD To Project s PE A: Artillery Systems EMD Army Page 11 of 13 R1 Line #

12 Exhibit R4, RDT&E Schedule Profile: PB 2015 Army : March 2014 R1 Program Element (Number/Name) PE A / Artillery Systems EMD or Testing Government Development Test Milestone C Low Rate Initial Production Low Rate Initial Production Deliveries Full Up System Live Fire Test IOTE Full Rate Production Decision FY 2013 FY 2014 FY 2016 FY 2017 FY 2018 FY PE A: Artillery Systems EMD Army Page 12 of 13 R1 Line #

13 Exhibit R4A, RDT&E Schedule Details: PB 2015 Army : March 2014 R1 Program Element (Number/Name) PE A / Artillery Systems EMD Schedule Details Start End Events Quarter Year Quarter Year or Testing Government Development Test Milestone C Low Rate Initial Production Low Rate Initial Production Deliveries Full Up System Live Fire Test IOTE Full Rate Production Decision PE A: Artillery Systems EMD Army Page 13 of 13 R1 Line #

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